Los Angeles votes for more cannabis business

Not everyone is afraid of cannabis—at least not in California. Los Angeles has just voted to resume issuing licenses to cannabis dispensaries. The city had been curbing the spread of dispensaries since 2011, eventually bringing it to a near standstill in 2013.

The city’s residents had a choice between two measures put to a referendum to replace the old one Proposal D. Each of the measures was intended to regulate and authorize cannabis stores—which had previously been limited to 135 in the city—and allow them to grow, transport, or test cannabis.

Proposition M was thus approved by 79.4%. It also imposes several taxes on dispensary operations, generating an estimated total revenue of 50 million $ in taxes in 2018 for Los Angeles alone. Penalties for violations of Proposition M have also been increased. If a store operates without the proper license, both the store owner and the property owner may be fined 20,000$ per day and may also have their electricity and water service cut off more easily.

Los Angeles will thus quickly become the largest municipal cannabis market to have regulated cannabis retail stores. The Full legalization of cannabis in California is expected to be ready by the end of September 2017. The 135 existing dispensaries will be the first to be eligible to apply for recreational licenses. In other words, the value of these 135 dispensaries is set to rise sharply by then, and the market for «trading» licenses has a bright future ahead of it.

The new regulatory framework for dispensaries will also serve as a stepping stone for future cannabis regulation. The entire country will be watching closely to see how Los Angeles regulates cannabis. Given its size, the city will serve as a model for all other U.S. states—and perhaps even other countries.